SEOUL: Sinokor Merchant Marine and Heung-A Shipping have signed a basic agreement on April 3 as the first step towards merging their container shipping business.
Both companies will start cooperating from 10 April, and will formally integrate their container operations on 31 December 2019.
The union of the two companies’ container units would create combined capacity of just over 100,000 TEUs and is part of the second phase of restructuring under Korea Shipping Partnership (KSP).
KSP is a quasi-alliance promoted by the Ministry of Oceans and Fisheries and Korea Shipowners' Association to rationalize operations in the intra-Asia container segment.
On 28 March, Heung-A Shipping confirmed its intention to integrate the container shipping operations with those of Sinokor.
Also on 3 April, South Korea’s flagship carrier Hyundai Merchant Marine signed an agreement to collaborate with Sinokor and Heung-A to strengthen the latter two companies’ combined container operations.
The agreement between HMM, Sinokor and Heung-A will replace their existing HMM + K2 consortium, which began operating intra-Asia services in January 2017.